In a recent Court Case, the Administrative Court of Appeal of Lyon (Court Case no.93-1228 and 93-1244, July 10, 1996) stated that illicit sales of substance with an oestrogen action likely to be administered to animals, the flesh or products of which are aimed to be consumed by humans belong to the field of application of VAT, insofar as their taxation does not misjudge Article 2 of the sixth directive in the interpretation given by the European Community Court of Justice.

This Court Case gives some important specifications concerning the scope of application of French VAT. Indeed, noting that all operations concerning these substances were not prohibited, the Court divides activities (such as the delivery of drugs) linked to criminal proceedings, not belonging to the economic field and activities which, though illegal or even legally reprehensible, belong fully to an existing economic process.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be brought about your specific circumstances.

For additional information contact Claire Acard on 33/(1)/55 61 10 10, Lionel Benant on 33/78.63.72.35, Joel Fischer on 33/78.63.72.31, or Laurent Borey on 33/(1).55 61 10 10 or enter text search: "ARCHIBALD ANDERSEN Profile".

The members of ARCHIBALD ANDERSEN Association d'Avocats (S.G. Archibald and Arthur Andersen International) are registered with the Hauts-de-Seine Bar and the Lyon Bar.